Call buyers score again in $UPS

United Parcel Service has been a frequent target of bullish option activity recently, and it paid off once more today.

On Aug. 31, Investitute’s tracking systems detected the purchase of 5,000 September $123 calls for $1.57 to $2 with shares at $122.97. These were clearly new positions, as open interest in the strike was only 757 contracts before the trades occurred. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls sold for $3.15 today, twice their initial purchase price. The stock rose 1.69% at the same time, illustrating the kind of leverage that can be achieved with options. It was the third winning UPS trade posted on Investitute in the last two weeks.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

UPS was up 1.1% to $124.34 today. The delivery giant is up sharply since beating quarterly expectations in late July.